9. DAVE HEREORA (Labour) Link to this
to the Minister of Energy
How has the country’s electricity system coped with record low inflows into New Zealand’s hydro lakes?
Hon DAVID PARKER (Minister of Energy) Link to this
I am pleased to say that all those involved have managed the situation very well, even though inflows into our hydro lakes by early June were the lowest since 1947. By comparison, hydro inflows were higher in the 1992 dry year, when National was in Government, yet lake levels ended up much lower and drastic power savings were needed to get through the winter. We are better off this year, thanks to the Electricity Commission, better industry coordination, and improving supply margins. That is why there was no crisis, despite Mr Brownlee’s most fervent prayers.
I would like once again to thank the public of New Zealand for their efforts. As many have quite rightly noted, long-term prudent use of electricity is good for the back pocket as well as for the environment and the country. The campaign led to 4 percent savings in electricity use overall, with State sector savings achieving as much as 7 percent.
Gerry BrownleeCan the Minister confirm the following things: that this winter is the fourth under the Labour Government where New Zealanders have been asked to seriously save power, that forced power savings this winter have knocked $3 billion out of the economy, that spot prices have hit record levels, and that the power savings campaign started far too late; if so, why is the Minister now crowing in this House when security of electrical supply is not something his Government has anything, at all, to be proud of?
I can confirm that notwithstanding the lowest inflow recorded since 1947 for the 3 months to June, we have managed very well. In terms of spot prices, of course, that is the intention of an electricity market: there are increases in the spot market when there is a shortage of the goods that are being sold.